Customs Warehousing - [Customs Warehousing]
![Customs Warehousing - [Customs Warehousing]](/img2/77/customs-warehousing.webp)
Tax and Duty ManualCustoms WarehousingGuidance Manual on Customs WarehousingUpdated December 2020This Manual provides a guide to the interpretation of the law governing the Customs WarehouseProcedure. This is set out in Council Regulation (EU) No. 952/2013 (the Union Customs Code),Commission Regulation (EU) No. 2015/2447 (the Implementing Regulation), and CommissionRegulation (EU) No. 2015/2446 (Delegated Regulation).Published by Authorisations and Reliefs Unit, Customs Division.Queries: Email: revcep@revenue.ieThe information in this document is provided as a guide only andis not professional advice, including legal advice. It should not beassumed that the guidance is comprehensive or that it provides adefinitive answer in every case.1
Tax and Duty ManualCustoms WarehousingTable of ContentsDefinitions .4Introduction .51. What is customs warehousing?.51.1 Public and private customs warehouses.52. Application for Authorisation.62.1 Application Procedure .62.2 Processing of the application by Division/LCD.62.3 Economic need.72.4 Guarantee .72.5 Authorisation involving more than one Member State. .92.5.1 Main accounts held in Ireland .92.5.2 Main accounts held in another Member State.102.6 What goods can be stored in a customs warehouse? .102.7 What goods cannot be stored in a customs warehouse? .102.8 How long can goods be stored in a customs warehouse? .112.9 Can goods be retailed in a customs warehouse?.113. Issue of the Authorisation .113.1 When does an Authorisation become effective?.113.2 Period of validity .114. Entry of goods to the procedure .114.1 How are goods entered to the customs warehousing procedure? .125. Discharge of goods from the customs warehouse procedure .125.1 How are goods discharged from a customs warehouse? .125.2 How are goods released for free circulation?.125.3 Simplifications .125.4 How is the duty calculated? .135.5 What is required for goods, which are re-exported?.135.6 Discharge of goods to another procedure other than to free circulation .135.7 Accounting for losses .136. Stock records.146.1. What stock records must the trader maintain? .146.2 Are normal commercial stock records acceptable?.147. Stock returns .157.1 Who signs the stock return? .162
Tax and Duty ManualCustoms Warehousing7.2 What does the Control Officer do with the stock return? .168. Temporary removal of goods from a customs warehouse .179. Movement of customs warehouse goods. .1710. Handling of goods in a customs warehouse.1710.1 Usual forms of handling .1711. Common storage of goods in a customs warehouse .1811.1 Can Union goods be stored in a customs warehouse? .1812. Equivalent goods .1812.1 Restrictions to the use of equivalence .1913. Commercial Policy Measures .19Appendix I - Annex 71-03 – DA List of permitted usual forms of handling .20Appendix II - ANNEX 71-04 – DA Special Provisions Concerning Equivalent Goods.22Appendix III - ANNEX 71-02 DA Sensitive goods and products .263
Tax and Duty ManualCustoms WarehousingDefinitionsIn the context of this instruction:“Union Customs Code” refers to EU Council Regulation 952/2013 establishing the Union CustomsCode;“DA” refers to the Delegated Act; Commission Regulation (EC) No. 2015/2446“IA” refers to the Implementing Act; Commission Regulation (EC) No. 2015/2447“Commercial policy measures” means non-tariff measures established, as part of the commoncommercial policy, in the form of Union provisions governing the import and export of goods, suchas surveillance or safeguard measures, quantitative restrictions or limits and import or exportprohibitions;“Customs approved treatment or use” means any use to which goods are put which is approvedby Revenue, for example, re-export, entry into a customs warehouse, release for free circulation,entry to another customs approved procedure e.g. Inward Processing Procedure;“Import duty” means Customs duty payable on the import goods.“Release for free circulation” means released on to the European Union market with Customs dutyand other charges paid.“Usual forms of handling” means such handling operations as are needed to ensure preservationof goods or to improve packaging or marketable quality which may be carried out in customswarehouses.4
Tax and Duty ManualCustoms WarehousingIntroductionCustoms warehousing is part of a number of EU wide suspensive arrangements provided for underEU legislation called Special Procedures. The use of a customs warehouse requires anauthorisation issued by Revenue. The authorisation allows for Non-Union goods to be stored in acustoms warehouse with suspension of the payment of import duty or VAT.1.What is customs warehousing?Customs warehousing allows for the storage of non-Union goods in an authorised designatedlocation within the customs territory of the EU without being subject to import duties. The dutyliability is discharged if the goods are re-exported outside of the European Union. If the goods arereleased to free circulation, then the duty and other charges become payable at this time.1.1Public and private customs warehouses.There are three main categories of customs warehouses, Public type I, Public type II and Private.Public type I is used when the responsibilities lie with the holder of the authorisation and with theholder of the procedurePublic type II is used when the responsibilities lie with the holder of the procedure;A private warehouse is reserved for the use of the authorised trader who is also the depositor ofthe goods. The trader need not be the owner of the goods being deposited.Example of a private warehouse:Goods arrive from Company A who is situated outside the EU. Company B is a subsidiary ofcompany A and have a warehouse authorisation in place. The goods are entered into thewarehouse procedure with company B as consignee, they are stored until such time as company Bdischarge them into their Inward Processing authorisation. Ownership remains with company A,however the responsibilities of the warehouse authorisation lie with company B. There is no thirdparty involvement.While the use of customs warehousing is for the storage of goods, some minor handlingoperations may be allowed while goods are in the customs warehouse. These are called UsualForms of Handling and are set out in Annex 71-03 DA (see Appendix I).5
Tax and Duty Manual2.Customs WarehousingApplication for Authorisation.(UCC Articles 211(1))2.1Application ProcedureApplication is made by way of the EU Customs Decision System which can be accessed at thefollowing link: Customs Decision System (CDS)Only electronic applications can be accepted. It is no longer possible to use paper applicationforms.Authorisations & Reliefs Unit will only accept an application if all the relevant information ispresent. There is a 30-day period for acceptance of the application during which time all theinformation required to make a decision must be submitted.2.2Processing of the application by Division/LCDA& R Unit will perform the electronic checks on the system for acceptance of the application.Once it has been accepted it will be referred to the traders Supervising Revenue Office forexamination and completion of the Control Officer’s report. Revenue will examine the premises,the accounting procedures, the stock control systems and, security issues. Revenue will meet withthe trader in regard to these issues and to ensure that all conditions are fulfilled by anyoneavailing of customs warehousing. Revenue has 60 days in which to make a decision on theapplication once it has been formally accepted. It may be necessary to extend this 60 day periodif it is found that further information is required. Issues that will be examined include: the applicant can demonstrate that there is an economic need for customs warehousingand that the warehouse is to be used primarily for the storage of goods; a verifiable and accurate stock control and accounting system is in place; any usual forms of handling which is intended to be carried out is clearly set out in therecords. official supervision and checks can be affected without the need for an administrativesystem which is out of proportion to the economic needs involved; the applicant is capable of fulfilling the obligations that arise from the storage of goodscovered by the customs warehousing procedure and of complying with the conditions ofapproval governing the Authorisation; the intended premises is suitable with regard to security, access arrangements, health andsafety and storage facilities; if the application includes goods which may present a danger or are likely to spoil othergoods or require special storage facilities, the premises must be equipped to receive suchgoods.6
Tax and Duty Manual2.3Customs WarehousingEconomic needThe trader must provide sufficient evidence of economic need at the time of application and thisevidence must be assessed as to the necessity for customs warehousing facilities. An example ofevidence of economic need may be contractual arrangements between the applicant and his/hercustomers or potential customers.The following are the criteria for establishing economic need: An application for public warehousing must include evidence of public demand for generalwarehousing facilities. This should include details of the expected volume of business e.g.the anticipated number of traders, number of transactions, amount of customs liability atany one time and the degree of openness or availability of the warehousing facilities to thepublic; An application for private warehousing must include evidence of the necessity for thetrader to have storage facilities for imported goods. As a general rule an economic needcan be said to exist for a private warehouse where commercial operations necessitate thestorage of goods (for example, awaiting entry into Inward Processing). Supportingevidence should indicate the operational necessity for storage, stock levels, frequency ofusage, nature of business and any further information necessary to aid assessment.2.4Guarantee(UCC, Articles 89 and 211)A Comprehensive Guarantee Authorisation must be in place before a customs warehouseauthorisation can be issued. A guarantee must be provided in the form of either a cash deposit ora guarantee. The trader can apply for a full waiver if he is an Authorised Economic Operator, or, ifthe trader is not an Authorised Economic Operator, he may qualify for a waiver if he can fulfil thefollowing conditions; have an appropriate record of compliance with customs requirements; have a satisfactory system of managing commercial and, where appropriate, transportrecords, which allows appropriate customs controls; demonstrate, where appropriate, proven financial solvency; and have practical standards of competence or professional qualifications directly related tothe activity carried out.7
Tax and Duty ManualCustoms WarehousingThe following is an example of the calculation of the reference amount for the guarantee for awarehouse authorisation covering Ireland only. If when calculating the reference amount the dutyrate on the goods intended for warehousing is zero then the VAT figure must be used:Total value of goods which may be placed under customs warehousingper year is estimated to be: 5,000,000Value of goods which may have been placed under customswarehousing at a given point in time according to the storagecapacity of the holder of the authorisation: 1,000,000Duty Rate:10%Calculation of the reference amount regarding import duty: 1,000,000 x 10% 100,000Guarantee reference amount is determined as 100,000.If the application includes another Member State all charges (for example, VAT) must be includedin the calculation of the reference amount for the guarantee. See example below.Total value of goods which may be placed under customs warehousingper year is estimated to be: 5,000,000Value of goods which may have been placed under customswarehousing at a given point in time according to the storagecapacity of the holder of the authorisation: 1,000,000Duty Rate:10%Calculation of the reference amount regarding import duty: 1,000,000 x 10% 100,000VAT rate:23% 1,100,000 x 23% 253,000Guarantee reference amount is 100,000 253,000 353,000.8
Tax and Duty Manual2.5Customs WarehousingAuthorisation involving more than one Member State.(Article 260,261 IA)An Authorisation may be issued to a trader who wishes to store goods in more than one MemberState. An application for this type of Authorisation is generally submitted in the Member Statewhere the trader’s main accounts are held. A company whose main accounts are held in Irelandwill apply to the Irish administration to have another Member State or States included in their IrishAuthorisation. In the same way a company whose accounts are held in another Member State,but who wishes to store goods in Ireland, will apply to the Customs Authorities in the otherMember State to have Ireland included in their Authorisation.2.5.1 Main accounts held in IrelandAll applications should be made via the electronic CDS system with Ireland set down as the mainCustoms Authority.The Supervising Customs Office should process the application as outlined in paragraph 2.2.The Supervising Customs Office should ensure that any controls required at a local level in anyother Member State are clearly established at this stage.The Officer’s report should be referred to Authorisation & Reliefs Unit.The time limit for examination of this type of authorisation by the Division/LCD is 60 days.Authorisation & Reliefs Unit will generate a draft Authorisation which is communicated to theauthorities in the Member State/s in which the procedure will be carried out. This draft willinclude the controls required by the Irish Administration. The authorities in the Member State orStates involved have 30 days to respond with any objections, if there are no objections or nocommunication from the Member State or States by the end of the 30 days the authorisation canbe granted. If the Member State or States put forward objections and no agreement is reachedwithin 60 days from date draft authorisation was communicated, the authorisation shall not begranted for the part in dispute.Responsibility for control of the Authorisation rests with the Irish Administration (notwithstandingthe fact that the goods are being stored in another Member State).Details of stock records and, or any movement of goods, regardless of what MS goods are storedor moved must be available to the Irish Administration.Authorisation & Reliefs Unit will maintain contact with other Administrations regardingamendments or other issues throughout the lifetime of the Authorisation.9
Tax and Duty ManualCustoms Warehousing2.5.2 Main accounts held in another Member State In the case of applications (involving Ireland) in other Member States, the draftAuthorisation is communicated by the electronic system to Ireland. This draft is forwarded to the Division or LCD where the Irish trader is based. This draftshould be examined in a timely fashion as the authorisation may be issued by the otherMember State if no objection is received within 30 days. The designated Control Officer should contact the trader and arrange a meeting toexamine the proposed premises, the accounting procedures used and to explain to thetrader their obligations with regard to this customs warehouse authorisation. The Division or LCD may, if they consider it necessary, require that security be put in placewith separate conditions agreed in respect of the Irish trader. However, responsibility forcontrol of the authorisation rests with the issuing Member State. The Division or LCDshould liaise with the issuing Member State through Authorisation & Reliefs Unit regardingany necessary controls. On receipt of a positive recommendation from the Division or LCD, Authorisation & ReliefsUnit will inform the other Member State that Ireland has no objection to the issuing of theAuthorisation. Authorisation & Reliefs Unit will be kept informed by other Administrations regarding anyamendments or other issues throughout the lifetime of the Authorisation.2.6What goods can be stored in a customs warehouse?The following goods can be stored in a customs warehouse: 2.7non-Union goods liable to customs duty and, or VAT (whether or not eligible forpreference);Equivalent goods not under the warehouse procedure.What goods cannot be stored in a customs warehouse?The following goods cannot be stored in a customs warehouse: meat, meat products and other goods subject to veterinary checks unless the necessaryimport licence and, or health certificate have been presented and veterinary checks havebeen completed at the frontier; non-Union goods subject to prohibitions or restrictions unless the necessary supportingdocumentation such as an import licence has been presented; goods liable to excise duties unless the customs warehouse is also authorised as an excisewarehouse or the excise duty is paid before the goods are entered into the customswarehouse.10
Tax and Duty Manual2.8Customs WarehousingHow long can goods be stored in a customs warehouse?Generally there is no limit on the length of time that goods can be stored in a customs warehouse.2.9Can goods be retailed in a customs warehouse?(Article 201 DA)Retail sales cannot take place in a customs warehouse unless goods are retailed in any of thefollowing situations:3. with relief from import duty to travellers to or from countries or territories outside thecustoms territory of the Union. (e.g. from duty free shops at airports); With relief from import duty under diplomatic or consular arrangements; to members of international organisations; with relief from import duty to NATO forces; remotely, including via the Internet.Issue of the AuthorisationThe Control Officer’ report is received by Authorisations and Reliefs Unit with a recommendationto issue the authorisation to the trader. The authorisation is then generated on the electronicsystem and forwarded to the trader through the Trader Portal.3.1When does an Authorisation become effective?(UCC Art 211 (2)(g))An Authorisation will take effect on the date of issue or on any later date specified in theAuthorisation. Customs Warehouse Authorisations cannot be issued retrospectively.3.2Period of validityThere is no limit to the period of validity for a customs warehouse Authorisation.4.Entry of goods to the procedureGoods can be entered into the customs warehouse procedure by direct import, by transfer fromanother warehouse or by transfer from another special procedure.11
Tax and Duty Manual4.1Customs WarehousingHow are goods entered to the customs warehousing procedure?A H2 customs declaration is mandatory when entering goods to the customs warehousingprocedure. The trader must: enter the appropriate procedure code in D.E. 1/10 of the declaration – first two digits willbe 71; enter the customs warehouse location number in D.E. 2/7. enter details of the goods in the stock records on their arrival at the customs warehouse.5.Discharge of goods from the customs warehouse procedure5.1How are goods discharged from a customs warehouse?(UCC 215)Goods may be discharged by any of the following: release for free circulation; re-export outside the EU (including duty free sales to entitled travellers); entry to another special procedure either within Ireland or in another Member State.5.2How are goods released for free circulation?A H1 customs declaration is mandatory when releasing goods from the warehouse to freecirculation, unless the trader has an authorisation for Simplified Procedures. The trader must: 5.3present the declaration and any other appropriate documents required by Revenue;pay any customs duty and charges – a deferred payment arrangement may be enteredinto;record details of the discharge, including details of the declaration (number and date) etc.in the stock records.SimplificationsAn authorisation for Warehouse procedure allows for standard entry and discharge of theprocedure only. Under the UCC any simplifications (EIDR or monthly declarations and so on) mustbe covered by a separate authorisation for Simplified Procedure.12
Tax and Duty Manual5.4Customs WarehousingHow is the duty calculated?(UCC Article 70, and Article 128 IA)The amount of duty on goods released for free circulation is based on the transaction value of thegoods when sold for export to the EU. Where the goods are not sold prior to being brought intothe EU but are sold while in a warehouse the transaction value will be determined on the basis ofthat sale.If the goods have incurred warehousing, preservation or handling costs while in the customswarehouse these costs may be deducted provided, they are shown separately from the priceactually paid or payable for the goods and are clearly reflected in the trader’s accounts. Wherethe above costs are deducted, the value of warehoused goods on entry for free circulation shouldnot be less than the declared value on original entry into the warehouse.5.5What is required for goods, which are re-exported?An export declaration must be completed in respect of goods being re-exported which werepreviously entered for the customs warehousing arrangements. Evidence that the goods have leftthe Union must to be kept by the trader. Procedure code 3171 must be used in box 37 of thedeclaration.In the case of goods which were originally under the inward processing procedure and are nowunder warehousing the re-export declaration must refer to the IP procedure, therefore theprocedure code to be used is 3151. The warehouse procedure is not referred to in this case.5.6Discharge of goods to another procedure other than to free circulationFor a discharge to any of the procedures (other than to free circulation) mentioned at paragraph5.1 the following is required: Presentation of a customs declaration and other appropriate documents to the ControlOfficer. Details of the discharge including details of the declaration (entry number and date) must berecorded by the trader in the stock records. Details of entry to the subsequent procedure (e.g. Inward Processing)5.7Accounting for lossesCustoms duty must be collected on losses caused by events outside the control of a trader or ongoods stolen from the customs warehouse.13
Tax and Duty Manual6.Customs WarehousingStock records(Article 214 UCC, and 178 DA)6.1.What stock records must the trader maintain?The trader must maintain stock records as follows: details from all customs declarations entering goods to the customs warehouse. details from all customs declarations discharging goods out of the customs warehouse toany other customs procedure; (if approved) details of transfers in and out on based on commercial documentation; the date and reference particulars of any other documents relating to the entry anddischarge of goods from the customs warehouse; types of usual forms of handling carried out; where goods are to undergo usual forms of handling in the customs warehouse, separateaccounts must be held on the cost of such handling.; information enabling the goods to be monitored, including their location within thecustoms warehouse premises and particulars of any transfer; commercial or technical descriptions necessary to identify the goods; details of movements, temporary removals: details of common storage; details of use of equivalent goods details of any goods entered to other economic procedures within the customs warehouse.The stock records must give a complete history of the goods from the time of their entry to anddischarge from the customs warehouse.6.2Are normal commercial stock records acceptable?If the normal stock records maintained by the customs warehouse contain all of the requirementsmentioned above, the trader will be approved to use them for the purpose of customs warehousecontrol.14
Tax and Duty Manual7.Customs WarehousingStock returnsStock returns must be submitted by the trader to their supervising office every 100 days.The minimum stock detail required is as follows: opening stock by commodity code; details of all entries into the customs warehouse (on declarations and, or commercialdocumentation). These details should include; date of entry into the customs warehouse, customs declaration number and date, (if approved), details of transfers using commercial documentation , quantity and description, commodity code;details of all discharges from the customs warehouse: These details should include; date of discharge from customs warehousing, customs declaration number and date relating to the discharge, (if approved), details of transfers using commercial documentation, T1 Full Transit number if relevant quantity and description, commodity code; If authorised, details of all temporary removals from the customs warehouse; details of all goods transferred to another customs warehouse either located within Irelandor in another Member State; closing stock by commodity code, description and quantity. details of stock segregation if used. details of equivalent goods if used.The details required in the stock return should be agreed with the trader before the Authorisationis issued and should be set out in the conditions attached to the Authorisation. The trader shoulddemonstrate that s/he is capable of producing the required return.15
Tax and Duty Manual7.1Customs WarehousingWho signs the stock return?The stock return must be certified as being true and complete by the trader or his/her nominatedrepresentative as agreed with the Control Officer. The certificate should be in the followingformat:I, , being authorised on behalf of , declare that theinformation contained in the attached report, consisting of pages, datedand titled is true and complete and represents theactual stock in the warehouse.7.2What does the Control Officer do with the stock return?If the stock return is not received by the due date the trader should be requested to submit itimmediately. On receipt of the stock return the Control Officer should: confirm
warehousing at a given point in time according to the storage capacity of the holder of the authorisation: 1,000,000 Duty Rate: 10% Calculation of the reference amount regarding import duty: 1,000,000 x 10% 100,000
Customs warehouse of either kind could be set up only in locations that were declared as ‘warehousing station’ under section 9 of the Act. The law relating to customs warehousing in India has been considerably liberalised with effect from 14 May 2016. The important changes are – The concept of warehousing station has been removed.
Customs warehousing is a Special Procedure which requires authorisation by Revenue. Non-Union goods can be stored in a customs warehouse without payment of import duty or VAT. These charges are suspended until the goods are discharged from the warehouse. 1. Change over from Customs Code to Union Customs Code
Data warehousing fundamentals for IT professionals / Paulraj Ponniah.—2nd ed. p. cm. Previous ed. published under title: Data warehousing fundamentals. Includes bibliographical references and index. ISBN 978-0-470-46207-2 (cloth) 1. Data warehousing. I. Ponniah, Paulraj. Data warehousing
Data Warehousing on AWS AWS Whitepaper Introduction Data Warehousing on AWS Publication date: January 15, 2021 (Document histor y and contributors (p. 23)) Enterprises across the globe want to migrate data warehousing to the cloud to improve performance and lower costs. This whitepaper discusses a modern approach to analytics and data warehousing
The U.S. Customs and Border Protection Form 7501 is the final presentation to U.S. Customs and Border Protection and includes the payment of duties and other U.S. Customs and Border Protection related charges. The U.S. Customs and Border Protection Form 7501 must be filed with U.S. Customs
customs duty to be paid on imported goods. 1.2 Why is a customs value necessary? In most cases customs duty is charged as a percentage of the value of the goods being imported – “ad valorem duty”. In order to calculate the amount of duty payable the customs value must first be established. 1.3 Where is the legislation covering customs .
charges (duties, taxes, or other debts owed Customs) in the event the charges are not paid by the broker. Therefore, if you pay by check, Customs charges may be paid with a separate check made payable to the U.S. Customs Service, which shall be delivered to Customs by the broker. Importers (Please see page 2) Lisa Ragan Customs Brokerage
Customs Broker in a Customs Station, shall before applying to the Principal Commissioner of Customs or Commissioner of Customs, meet the following conditions that: — (a) he is a citizen of India; . 1984 or regulation 8 of the Custom House Agents Licensing Regulation, 2004 or regulation 6 of the Customs Brokers Licensing Regulations, .
